9. At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write downbefore any adjustment at P150,000.Product 1Product 2Product 3Product 4Historical costReplacement costSales priceNet realizable valueNormal profit800,000900,0001,200,000550,000250,0001,000,0001,200,0001,300,0001,100,000150,000700,0001,000,0001,250,000950,000300,000500,000600,0001,000,000350,000300,000What amount of loss on inventory writedown should be included in cost of goods sold?a. 100,000b. 200,000C. 400,000d. 250,000

Name: 9. At year-end, Julie Company reported ending inventory at P3,000,000
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 9. At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write downbefore any adjustment at P150,000.Product 1Product 2Product 3Product 4Historical costReplacement costSales priceNet realizable valueNorm

Total Historical cost of inventory = P3,000,000 Total Replacement cost of inventory = P3,700,000…

Business

Accounting

At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write down before any adjustment at P150,000. Product 1 800,000 900,000 1,200,000 550,000 250,000 Product 3 700,000 1,000,000 1,250,000 950,000 300,000 Product 2 Product 4 Historical cost Replacement cost Sales price Net realizable value Normal profit 1,000,000 1,200,000 1,300,000 1,100,000 150,000 500,000 600,000 1,000,000 350,000 300,000 What amount of loss on inventory writedown should be included in cost of goods sold? a. 100,000 b. 200,000 c. 400,000 d. 250,000

At year-end, Julie Company reported ending inventory at P3,000,000, and the allowance for inventory write down before any adjustment at P150,000. Product 1 800,000 900,000 1,200,000 550,000 250,000 Product 3 700,000 1,000,000 1,250,000 950,000 300,000 Product 2 Product 4 Historical cost Replacement cost Sales price Net realizable value Normal profit 1,000,000 1,200,000 1,300,000 1,100,000 150,000 500,000 600,000 1,000,000 350,000 300,000 What amount of loss on inventory writedown should be included in cost of goods sold? a. 100,000 b. 200,000 c. 400,000 d. 250,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

d t nces SLR Corporation has 500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 $ 53 51 73 Required 1 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Complete this question by entering your answers in the tabs below. Product Cost 9 13 Required 2 Product 2 $ 37 29 39 7 11 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. Market Per Unit Inventory Value Unit Cost Lower of Cost or Market
5) Day Company, which uses the FIFO inventory method, had 254,000 units in inventory at the beginning of the year at a FIFO cost per units of $30. No purchases were made during the year. Quarterly sales information and two sets of end of quarter replacement cost figures follow: Quarter Unit Sales Case A Case B S $ 1 2 3 4 100,000 29 25 30,000 22 27 42,500 18 19 30,500 22 27 The market decline in the first quarter under Case A was expected to be temporary, whereas under Case B the decline was expected to be non temporary. Declines in other quarters were expected to be permanent. Required: Determining cost of goods sold for the four quarters under each case and verify the amounts by computing cost of goods sold using the lower of cost or market method applied on an annual basis.
Nord Store’s perpetual accounting system indicated ending inventory of $20,000, cost of goodssold of $100,000, and net sales of $150,000. A year-end inventory count determined that goodscosting $15,000 were actually on hand. Calculate (a) the cost of shrinkage, (b) an adjusted costof goods sold (assuming shrinkage is charged to cost of goods sold), (c) gross profit percentagebefore shrinkage, and (d) gross profit percentage after shrinkage. Round gross profit percentagesto one decimal place
At the end of a year it is determined that Ending inventory is understated by $10,000 What is the incremental impact on net income of this error next year. If $0, write "0". If you answer was overstated 10,000 you'd write 10,000. If understated 10,000 you'd record -10,000.
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 $ Cost Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product 1 $28 26 48 5 13 28 $ 98 58 Q Search Replacement cost 26 93 48 Product 2 $98 93 128 or 30 38 NRV Product 3 $58 48 60 10 20 W ENG 4x D 4:45 PM 11/27/2023
AFW inc. reported these figures for its fiscal year (amounts in millions): Net sales $2,100 Cost of goods sold $1,140 Ending inventory $330 Suppose AFW later learns that ending inventory was overstated by $8 million. What are the correct amounts for a) Net sales b) Ending inventory c) Cost of goods sold d) Gross profit
Ward Distribution Company has determined its year-end inventory on a LIFO basis at $320,000. Information pertaining to that inventory follows. Item Amount Estimated selling price $332,800 Estimated cost of disposal 16,000 Normal profit margin 48,000 Current replacement cost 304,000 What is the loss that Ward should recognize? Assume no previously recorded inventory holding loss. Select one: a. $0 b. $3,200 c. $16,000 d. $51,200 O
I need
HOMETOWN CHA-CHA DABARKADS employs the lower of cost of net realizable value in the measurement of inventory. On December 31, 2020, the ending inventory was reported as follows: Inventory (20,000 @ P21) P420,000 Less: Allowance for inventory writedown 60,000 Net Realizable Value P360,000 Sales and purchases for 2021 are as follows: Purchases Sales Quarter Units UnitCost TotalCost Units UnitPrice TotalPrice 1st 30,000 P18 P540,000 15,000 P19 P285,000 2nd 25,000 20 500,000 30,000 23 690,000 3rd 22,000 21 462,000 25,000 25 625,000 4th 35,000 19 665,000 20,000 24 480,000 The company uses weighted average method in determining inventory cost. On December 31, 2021. The net realizable value per unit is P19. REQUIRED 1. Compute the cost of inventory on December 31, 2021. Note: Round off the weighted average unit cost to two decimal places. 2. Compute the gain/(loss) on inventory writedown. Note: If the amount is a loss, place a hyphen (-) before the figure e.g. -1,234 3. Compute the cost of…